DPM Metals (OTCMKTS:DPMLF – Get Free Report) and Algoma Steel Group (NASDAQ:ASTL – Get Free Report) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Analyst Recommendations
This is a breakdown of current ratings and target prices for DPM Metals and Algoma Steel Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DPM Metals | 0 | 2 | 3 | 0 | 2.60 |
| Algoma Steel Group | 1 | 3 | 0 | 0 | 1.75 |
Volatility and Risk
DPM Metals has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Algoma Steel Group has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.
Insider & Institutional Ownership
72.0% of Algoma Steel Group shares are held by institutional investors. 0.3% of DPM Metals shares are held by company insiders. Comparatively, 7.8% of Algoma Steel Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares DPM Metals and Algoma Steel Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DPM Metals | 50.26% | 25.66% | 21.67% |
| Algoma Steel Group | -71.60% | -110.49% | -25.74% |
Valuation & Earnings
This table compares DPM Metals and Algoma Steel Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DPM Metals | $950.48 million | 9.61 | $369.23 million | $3.04 | 13.70 |
| Algoma Steel Group | $1.49 billion | 0.29 | -$704.89 million | ($7.35) | -0.55 |
DPM Metals has higher earnings, but lower revenue than Algoma Steel Group. Algoma Steel Group is trading at a lower price-to-earnings ratio than DPM Metals, indicating that it is currently the more affordable of the two stocks.
Summary
DPM Metals beats Algoma Steel Group on 9 of the 13 factors compared between the two stocks.
About DPM Metals
Dundee Precious Metals Inc., a gold mining company, engages in the acquisition, exploration, development, mining, and processing of precious metals. The company primarily explores for gold, copper, and silver deposits. It holds a portfolio of projects located in Bulgaria, Namibia, Serbia, and Ecuador. The company is based in Toronto, Canada.
About Algoma Steel Group
Algoma Steel Group Inc. produces and sells steel products primarily in North America. The company provides flat/sheet steel products, including temper rolling, cold rolled, hot-rolled pickled and oiled products, floor plate, and cut-to-length products for the automotive industry, hollow structural product manufacturers, and the light manufacturing and transportation industries; and plate steel products that consist of rolled, hot-rolled, and heat-treated for use in the construction or manufacture of railcars, buildings, bridges, off-highway equipment, storage tanks, ships, and military applications. Algoma Steel Group Inc. was founded in 1901 and is headquartered in Sault Ste. Marie, Canada.
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